Santander Overdraft problems

Sarran

Dear All,

I wonder if you can help me with something.

I was checking my credit file today and noticed that I had 2 months arrears against my Santander bank account (was recently A&L).

I was quite alarmed as I have an excellent credit rating and I phoned them. Apparently if you go over your overdraft limit now they register arrears against your credit file; I only did it once for 4 days so I'm not sure where 2 months fo arrears came from.

The Santander adviser told me it's automatic now and theres nothing they can do. I accept you shouldn't go over your overdraft limit and paid the extra charges but 2 montsh arrears, is a little harsh?

Is there anything I can do, is it arrears and if so how long will it show on my credit file?

Thank you for your time.

Consumerist

Firstly, any default on your credit file normally lasts for up to six years.

The question here is: were you in default.

A default usually occurs when you fail to make an agreed payment on time. I've not heard, myself, that going into unauthorised overdraft constitutes a "default".

I suggest you start the bank's formal complaints procedure. If you are not satisfied with their "final response", you can refer the complaint to the Financial Ombudsman Service. It's a free service so you have nothing to lose by using it.

You MUST complete the bank's complaints procedure before you can refer the complaint to the FOS.

Debs0778

Same thing has happened to me so I'll follow this thread closely.

They've marked a default against me - I was overdrawn by 58p for 2 days!

Consumerist

Debs0778 wrote: »

Same thing has happened to me so I'll follow this thread closely.

The bank has up to eight weeks to respond and the FOS investigation can take quite a few weeks. You might be better off to start the complaints procedure right away if you don't want this to drag on.

Edit
I get a funny (peculiar) feeling that Santander is taking the opportunity of scuppering their customer's chances of moving to another bank by spoiling their credit records. This is one to watch.

Sarran

Well I've raised a complaint so i'll see where it goes - thank you!

Debs0778

Keep me posted please - might go down that road myself

System

The OP doesn't actually mention 'default' in their post, rather 'arrears', very different things.

I agree that to record two months as arrears for being four days over your limit is harsh. Did the four days span one month to another by any chance? i.e. 30th, 31st, 1st, 2nd.

OP: A complaint is definitely the way to go. The only positive is that arrears markers have much less impact than a default, which virtually precludes you from mainstream lending until it disappears 6 years later.

I hope you manage to get this sorted.

Regards
UNDERGROUND

Sarran

It was actually from 21st June to 24th June, funds were paid in on the 25th.

Thanks for the advice, I'll see where it goes!

Nass_2

SANTANDER ARE FULL OF !!!! they just did that to me .... but i am writing to bbc watch dog ,to financia ombudsman we all should do that TOGETHER WE CAN !!!! SANTANDER THEY DOING THAT SO WE CANT OPEN BANK ACC WITH OTHER BANKS AND WE CAN ONLY GO TO THEM .

Azrael_1701

Nass wrote: »

SANTANDER ARE FULL OF !!!! they just did that to me .... but i am writing to bbc watch dog ,to financia ombudsman we all should do that TOGETHER WE CAN !!!! SANTANDER THEY DOING THAT SO WE CANT OPEN BANK ACC WITH OTHER BANKS AND WE CAN ONLY GO TO THEM .

Firstly, no need to shout. Secondly, you need to have exhaused the banks complaints procedure before the FO will get involved.

bengal-stripe

Nass wrote: »

SANTANDER ARE FULL OF !!!! they just did that to me .... but i am writing to bbc watch dog ,to financia ombudsman we all should do that TOGETHER WE CAN !!!! SANTANDER THEY DOING THAT SO WE CANT OPEN BANK ACC WITH OTHER BANKS AND WE CAN ONLY GO TO THEM .

You can always stay within your overdraft - just a thought!